US50 billion drop in worldwide manufacturing exports in February UN

Posted on March 9, 2020

China's exports of vital parts and components for products ranging from automobiles to cellphones are estimated to have shrunk by an annualised 2% in February, costing other countries and their industries $50 billion Countries or regions suffering the highest export losses are the European Union (EU), with nearly $15.6 billion, the United States ($5.8 billion), Japan ($5.2 billion), the Republic of Korea ($3.8 billion), Taiwan ($2.7 billion) and Vietnam ($2.3 billion), according to the U.N. Conference on Trade and Development (UNCTAD) Precision instruments, machinery, automotive and communication equipment are the hardest-hit sectors To contain losses countries can approach IMF Catastrophe Containment and Relief Trust – the CCRT – which provides eligible countries with up-front grants for relief on IMF debt service falling due This facility could provide about $40 billion for emerging markets that could potentially approach IMF for financial support. UN-backed global funds is also trying to make up the shortfall, in effect, by offering to inject around $50 billion into low-income and emerging market nations For low-income countries, IMF has a rapid-disbursing emergency financing of up to $10 billion (50 percent of quota of eligible members) that can be accessed without a full-fledged IMF programme